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As Australia grapples with the need for more housing, millions of spare bedrooms across the country are believed to be sitting empty. But some homeowners, who want to rent rooms out, say they're put off by tax implications.

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00:02This suburban homeowner considers herself one of the lucky ones.
00:06Our kids are now grown up and leaving home
00:08and we've got all this spare space downstairs.
00:11So ideally we'd like to be a part of the solution,
00:14help people out who are in housing distress.
00:18The Brisbane mum would like to offer some of her spare rooms
00:21as affordable rentals but worries about the...
00:24Cost and complexity, capital gains tax, implications,
00:27income tax and also the complexity of regulations navigating that.
00:33They're actually the main deterrence.
00:35A property economist believes more people would rent out a spare room
00:39if tax rules were clarified or international examples were followed,
00:43such as where the government defines a weekly threshold for rent or board
00:47which doesn't attract tax.
00:49New housing supply is a long way off and we do have a rental crisis.
00:54We need to be providing more affordable housing options to people.
00:57So this is a way of dealing with a cost of living crisis,
01:01a rental affordability crisis and we've also got a loneliness epidemic.
01:04Advocates acknowledge these kind of boarding or sharing arrangements
01:08aren't for everyone but argue those who want to do so should be able to.
01:12I think a government being able to provide clear information to them
01:15about how they're protected,
01:17that would really help more people step into home sharing.
01:20The federal government didn't respond to specific questions
01:23about clarifying tax rules for renting spare rooms.
01:26I think it's an old-fashioned way to get it out of your life.
01:27I think it's too close to a place in the house.
01:27I'm trying to get the home of you,
01:27but with some of the meetings and if and if you can move through
01:29support,
01:29I'm trying to be able to make a this amazing,
01:30I don't know if you can always have any more time

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